JetBlue Inks Renewable Fuel Agreement

HOUSTON (DTN) -- JetBlue has announced a 10-year renewable jet fuel purchase agreement with SG Preston, a bioenergy company, in which it plans to buy more than 33 million gallons of blended jet fuel per year for at least 10 years. JetBlue said in release the agreement with SG Preston covers about 20% of its annual fuel consumption at New York John F. Kennedy International Airport.

By partnering with SG Preston, JetBlue said it is creating renewable jet fuel that has the ability to benefit the airline's bottom line while also lowering its net CO2 emissions.

"JetBlue is preparing for a world where we must reduce our production of greenhouse gases," said Robin Hayes, president and chief executive officer, JetBlue. "With this in mind, we have executed one of the largest renewable jet fuel purchase agreements. This is just one step of many in our work towards a lower carbon future," Hayes said.

The agreement is the largest long-term binding commitment by any airline globally for renewable jet fuel produced from hydro-processed esters and fatty acids, or HEFA, JetBlue said.

The fuel will consist of 30% renewable jet fuel blended with 70% traditional Jet-A fuel, the company said. The renewable jet fuel portion produced from select plant oils is targeted to achieve a 50% or higher reduction in greenhouse gases emissions per gallon based on a life-cycle analysis.

JetBlue said it intends to supply New York-metropolitan area airports with renewable jet fuel.

The company said that the fuel is expected to meet the Environmental Protection Agency's qualification for renewable fuel standards, as well as the Roundtable on Sustainable Biomaterials certification standard for sustainable production of biofuels.

More than 2,200 commercial flights by 22 airlines have flown on different types of renewable jet fuel, many of which were HEFA-SPK type fuels like those to be produced by SG Preston.

"Our strategy is to address the demand versus supply gaps in the industry and align development and delivery mechanisms to meet our customers' demand in the least disruptive way," said Randy Delbert LeTang, SG Preston founder, chief executive officer and president.